Wintec Annual Report 2009

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FINANCIAL PERFORMANCE h) Student Fees and Other Receivables Student fees and other receivables are recognised and carried at original receivable amount less an allowance for any uncollectible amounts. Bad debts are written off when identified. i) Cash and Cash Equivalents Cash and short-term deposits in the balance sheet comprise cash at bank and in hand and short-term deposits with an original maturity of three months or less. For the purposes of the Cash Flow Statement, cash and cash equivalents consist of cash and cash equivalents as defined above, net of outstanding bank overdrafts. j) Borrowing Costs The Institute and group has elected to defer the adoption of the revised NZ IAS 23 Borrowing Costs (Revised 2007) in accordance with the transitional provisions of NZ IAS 23 that are applicable to public benefit entities. Consequently, all borrowing costs are recognised as an expense in the period in which they are incurred. k) Interest-Bearing Loans and Borrowing All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of transaction costs associated with the borrowing. After initial recognition, interest-bearing loans and borrowings are measured at amortised cost using the effective interest method. Amortised cost is calculated by taking into account any transaction costs and any discount or premium on settlement. Borrowings are classified as current liabilities unless the Institute or group has an unconditional right to defer settlement of the liability for at least 12 months after the balance date or if the borrowings are expected to be settled within 12 months of the balance date. Gains and losses are recognised in the Statement of Financial Performance when the liabilities are de-recognised as well as through the amortisation process. l) Provisions Provisions are recognised when the Institute has a present obligation (legal or constructive) as a result of a past event, it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability. Provisions are reviewed at each balance sheet date and adjusted to reflect the current best estimate. Where it is no longer probable that an outflow of resources embodying economic benefits will be required to settle the obligation, the provision shall be reversed. Where discounting is used, the increase in the provision due to the passage of time is recognised as a finance cost. m) Employee Entitlements Short-term employee entitlements Employee benefits that are due to be settled within 12 months after the end of the period in which the employee renders the related service are measured at nominal values based on accrued entitlements at current rates of pay. These include salaries and wages accrued up to balance date, annual leave earned to but not yet taken at balance date, and sick leave. A liability for sick leave is recognised to the extent that absences in the coming year are expected to be greater than the sick leave entitlements earned in the coming year. The amount is calculated based on the unused sick leave entitlement that can be carried forward at balance date, to the extent it will be used by staff to cover those future absences. A liability and an expense is recognised for bonuses where contractually obliged or where there is a past practice that has created a constructive obligation. Long-term employee entitlements Employee benefits that are due to be settled beyond 12 months after the end of period in which the employee renders the related service, such as long service leave and retirement gratuities, have been calculated on an actuarial basis. The calculations are based on: Likely future entitlements accruing to staff, based on years of service, years to entitlement, the likelihood that staff will reach the point of entitlement, and contractual entitlement information; and The present value of the estimated future cash flows. 44 _ Wintec Annual Report 2009
FINANCIAL PERFORMANCE NOTES TO THE FINANCIAL STATEMENTS (CONT) FOR THE YEAR ENDED 31 DECEMBER 2009 Sick leave, annual leave, vested long service leave, and non-vested long service leave and retirement gratuities expected to be settled within 12 months of the balance date, are classified as a current liability. All other employee entitlements are classified as a non-current liability. Superannuation schemes Defined contribution schemes Obligations for contributions to Kiwisaver, the Government Superannuation Fund, and other defined contribution superannuation schemes are recognised as an expense in the surplus or deficit as incurred. n) Leases Finance leases, which transfer to the Institute substantially all the risks and benefits incidental to ownership of the leased item, are capitalised at the inception of the lease at the fair value of the leased property or, if lower, at the present value of the minimum lease payments. The Institute has received ministerial approval for all such leases. Lease payments are apportioned between the finance charges and reduction of the lease liability so as to achieve a constant rate of interest on the remaining balance of the liability. Finance charges are included in the Statement of Financial Performance as finance costs. Capitalised leased assets are depreciated over the shorter of the estimated useful life of the asset and the lease term. Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are classified as operating leases. Initial direct costs incurred in negotiating an operating lease are added to the carrying amount of the leased asset and recognised over the lease term on the same basis as the lease income. Operating lease payments are recognised as an expense in the Statement of Financial Performance on a straight-line basis over the lease term. o) Revenue Revenue is recognised to the extent that it is probable that the economic benefits will flow to the institute and the revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognised: Government grants Government grants are recognised as revenue upon entitlement. Student tuition fees Revenue from student tuition fees is recognised over the period in which the course is taught by reference to the stage of completion of the course as at the balance sheet date. Stage of completion is measured by reference to the days of course completed as a percentage of total days for each course. Sale of materials Revenue is recognised when the significant risk and rewards of ownership have passed to the buyer and can be measured reliably. Interest Revenue is recognised as the interest accrues (using the effective interest method which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial instrument) to the net carrying amount of the financial asset. p) GST Revenues, expenses and assets are recognised net of the amount of GST except: Where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the Statement of Financial Position. Cash flows are included in the Cash Flow Statement on a gross basis and the GST component of cash flows arising from investing and financing activities, which is recoverable from, or payable to, the taxation authority, are classified as operating cash flows. Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority. q) Investments and Other Financial Assets Recognition and measurement Investments and financial assets in the scope of NZ IAS 39 Financial Instruments are categorised as either financial assets at fair value through surplus of deficit, loans and receivables, held-to-maturity investments, or available-for-sale financial assets. The classification depends on the purpose for which the investments were acquired. Designation is re-evaluated at each financial year end, but there are restrictions on reclassifying to other categories. Wintec Annual Report 2009 _ 45
Page 1 and 2: Wintec Annual Report 2009
Page 3 and 4: OVERVIEW Overview of Wintec AS AN A
Page 5 and 6: OVERVIEW 1995 Land is purchased on
Page 7 and 8: OVERVIEW Chair & Chief Executive’
Page 9 and 10: OVERVIEW 9 _ Wintec Annual Report 2
Page 11 and 12: CHAIR & CHIEF EXECUTIVE’S REPORT
Page 13 and 14: OVERVIEW Highlights 13 _ Wintec Ann
Page 15 and 16: HIGHLIGHTS HIGH SPEED CONNECTION TO
Page 17 and 18: HIGHLIGHTS ENHANCING ACADEMIC QUALI
Page 19 and 20: HIGHLIGHTS MEETING THE NEEDS OF EMP
Page 21 and 22: HIGHLIGHTS RELEVANT RESEARCH AND TE
Page 23 and 24: HIGHLIGHTS ‘ WE RECEIVED THE GLOB
Page 25 and 26: HIGHLIGHTS ‘ KIA HORA TE MARINO K
Page 27 and 28: HIGHLIGHTS WORKING WITH OTHER EDUCA
Page 29 and 30: OVERVIEW Financial Performance 29 _
Page 31 and 32: FINANCIAL PERFORMANCE
Page 33 and 34: FINANCIAL PERFORMANCE STATEMENT OF
Page 37 and 38: FINANCIAL PERFORMANCE CASH FLOW STA
Page 41 and 42: FINANCIAL PERFORMANCE NOTES TO THE
Page 43: FINANCIAL PERFORMANCE NOTES TO THE
Page 83 and 84: FINANCIAL PERFORMANCE 2009 STATEMEN
Page 85 and 86: FINANCIAL PERFORMANCE 2009 STATEMEN
Page 87 and 88: EQUAL OPPORTUNITIES EQUAL OPPORTUNI
Page 89 and 90: EQUAL OPPORTUNITIES EQUAL EDUCATION
Page 92: www.wintec.ac.nz

Wintec Annual Report 2009

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